Leading fiber internet provider Converge ICT Solutions Inc. (PSE: CNVRG) more than doubled its net income to ₱7.2 billion in 2021 from ₱3.4 billion the previous year, growing by 111% on the back of a record number of port rollouts, continued strong expansion of its residential subscriber base, and recovery of the enterprise business.
Converge doubles net income in 2021, books ₱7.2 billion
Converge reported that it sustained its robust growth with total consolidated revenues reaching ₱26.5 billion last year, 69.2% higher than the P15.7 billion revenues posted in 2020.
“Our entry into Visayas and Mindanao contributed to our aggressive port rollout and continued turn-in of subscribers in Luzon and existing markets pushed up our residential business revenues by 83.2%. Our network has now passed 10.9 million homes and we’re covering around 42.5% of Philippine households. We’re confident of meeting our accelerated goal of reaching 55% of all households by 2023,” said Dennis Anthony Uy, CEO, and Co-Founder of Converge.
The fiber internet company rolled out more than 650,000 ports in the fourth quarter, bringing its total port deployment to 2.4 million in 2021. It also reported quarterly net adds of 115,000 bringing its total residential subscriber count to 1.7 million by year-end, hitting the high end of management guidance.
“We sustained our industry-leading trifecta with another record financial performance in 2021,” said Converge President and Co-Founder Maria Grace Y. Uy, referring to the company’s 69.2% year-on-year revenue growth, 55.9% EBITDA margin, and 20.9% return on invested capital (ROIC), much higher than the average of broadband players in the Asia-Pacific region.
Uy noted that Converge also maintained its strong credit profile as reflected in the PRS AAA credit rating with Stable Outlook given by PhilRatings for its upcoming maiden bond issue. The proceeds of the bond issue will be used to partly fund its capital outlay requirements this year.
Converge announced that it has earmarked higher capital expenditures of ₱26 billion to ₱28 billion this year, with bulk allotted to fund the expansion of its access network nationwide and further extension of its fiber backbone. The company spent ₱25 billion on CapEx last year.
ALSO READ: Healthcare, Cybersecurity, and the COVID-19 Vaccine Supply Chain
As of end-2021, the Converge fiber backbone reached 103,000 kilometers, passing through 495 cities and municipalities across the country.
About Converge ICT Solutions, Inc.
Converge Information and Communications Technology Solutions, Inc. (PSE:CNVRG) is the leading pure fiber data network and internet service provider in the country. It is the first to run a pure end-to-end fiber internet network, providing Filipinos simple, fast, and reliable internet connection. Converge is ISO 9001 and CE2.0 Certified.
To know more, visit their official website today.